Aptamer Group plc

("Aptamer", the "Company" or the "Group")

Interim results for the six months ended 31 December 2024

Revenue growth, solid cash position and strong technical progress

Aptamer Group plc (AIM: APTA), the developer of novel Optimer^® binders to enable innovation in the life sciences industry, today announces its unaudited interim results for the six months ended 31 December 2024 (H1 2025).

Financial highlights

·    Revenue £0.7 million (H1 2024: £0.3 million).

·    Adjusted EBITDA loss of £1.1 million (H1 2024: £1.8 million).

·    Cash balance at 31 December 2024 of £2.0 million (H1 2024: £1.8 million).

·    Successful fundraising in August 2024 of £2.6 million (net) at 0.2p per share.

·    Completed a further reduction of the fixed cost base to circa £3.0 million per annum during the period.

Operational highlights

Board changes and strategic focus

·    In August 2024, the Board was restructured with Dr Adam Hargreaves appointed as Non-Executive Chairman, Dr Arron Tolley re-appointed as Chief Executive Officer, Andrew Rapson appointed to the Board as Chief Financial Officer.

·    In September 2024, Tim Sykes was appointed to the Board as Non-Executive Director.

·    New strategic approach launched with a focus on equity value creation through the development of high-value Optimer assets with licensing potential through commercial partners supplemented by short-term revenues from fee-for-service work.

Optimer programmes

·    Contract with Unilever extended in September 2024 to enable testing of deodorant Optimers in on-person trials.

·    Deodorant Optimer trials initiated on human skin with Unilever, on schedule, in Q4 2024 with promising initial stability results.

·    Binders for Neuro-Bio's novel Alzheimer's disease target have been validated in clinical samples to the highest level of statistical significance (1:100,000 probability of occurring by chance).

·    Agreement with AstraZeneca in July 2024 to explore fibrotic liver delivery vehicle for the targeted delivery of AstraZeneca's siRNA payload.

·    In vitro portion of the AstraZeneca programme was completed in December 2024, showing successful selective delivery of siRNA and gene silencing.

·    In-house demonstration of the fibrotic liver delivery vehicle with specific siRNA molecules targeting the mechanism of fibrosis. Data shows ability of system to reverse markers of liver fibrosis, suggesting a potential therapeutic approach.

Fee-for-service development

·    Contract with genetic medicines partner progressed to final stages of development for Optimer delivery vehicles in November 2024, following customer validation of target selectivity and demonstration of pan-species binding.

·    Multiple agreements with top 20 pharmaceutical and leading biotechnology companies for Optimer development as critical reagents to support therapeutic development programmes.

·    Extension contract signed with top 20 pharmaceutical partner in December 2024 for the optimisation of developed binders to protein purification.

·    Successfully developed binders as part of a Eurostars grant project for use in a medical device for improved non-invasive prenatal testing and the diagnosis of placental disease, with significant interest from commercial partners for potential licensing.

·    Successful development of enzyme modulating Optimers for global life science enzyme provider, with licensing discussions underway.

Commenting on the interim results, Dr Arron Tolley, Chief Executive Officer of Aptamer Group, said: "I am pleased to report significant milestones across each of the Group's asset development programmes. This includes the initiation of human skin trials with Unilever for our Optimer deodorant additives. We have also validated our binders for Alzheimer's disease diagnostics with clinical samples with solid results.  The Group's internal focus on drug delivery is moving forward at pace with success in lab-based tests for our fibrotic liver delivery vehicle with AstraZeneca and other internal validation work using the same delivery vehicle, such as reversal of fibrosis markers using a different siRNA. These advancements reinforce the power of Aptamer's platform and the Group's ability to deliver commercially valuable molecules across a range of different areas. 

Our fee-for-service pipeline has delivered success across multiple customer projects, creating additional valuable assets within the enzyme modulating reagent sector, where licensing discussions are currently underway. Furthermore, a second validated therapeutic delivery vehicle is now in the final stage of commercial development. These assets will add to Aptamer's current portfolio, supporting downstream revenues and further demonstrating the strength of the Group's discovery platforms. We are focusing on the commercial exploitation of numerous assets from a licensing perspective, which exemplifies the potential value of the Group's platform and its progression towards generating passive income streams.

In addition to technical progress, Aptamer is beginning to deliver strong and sustainable commercial momentum, signing multiple new contracts with global market-leading pharmaceutical companies, many of which represent repeat business. With a solid cash position and an advanced-stage sales pipeline, we are well-positioned to continue executing the Group's strategy, advancing assets towards commercialisation with partners, and delivering shareholder value."

Investor webinar

Dr Arron Tolley (Chief Executive Officer) and Andrew Rapson (Chief Financial Officer) will provide a live presentation relating to the Interim Results via Investor Meet Company on Tuesday, 11 March 2025, 14:00 GMT.

The live presentation is open to all existing and potential shareholders. Questions can be submitted at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet Aptamer Group plc via:

https://www.investormeetcompany.com/aptamer-group-plc/register-investor

Investors who already follow Aptamer Group Plc on the Investor Meet Company platform will automatically be invited.

- Ends -

For further information, please contact: 

About Aptamer Group

Aptamer Group is a leading global developer of aptamer-based ligands that help scientists remove the limits to discovery and innovation. Leveraging several proprietary discovery and development platform, Aptamer delivers custom affinity ligands, supported with a complete suite of characterisation and validatory assays that enhance the translation of its binders and optimise scientific outcomes for customers. 

Aptamer's cutting-edge technology spans healthcare, research, personal care, and industrial processes, delivering new affinity solutions for novel targets, advanced diagnostics, and precision therapies. By working with industry leaders in pharmaceutical, biotechnology, personal health, academic, and clinical research sectors, Aptamer is accelerating science through the custom development of tools and therapies. 

To register for news alerts by email, go to https://aptamergroup.com/investors/investor-news-email-alerts/   

Chief Executive Officer's statement

Overview

As part of the Group's strategy set by the newly structured Board during the period, Aptamer is focused on leveraging its Optimer discovery platform to develop binders for use across the life science industry. The Group is advancing several assets towards commercialisation with partners. These assets target the $210bn global affinity ligand market, have high potential licensing value and cover applications in cosmetics, diagnostics, and therapeutics.

In addition to strategic asset development, Aptamer supports a fee-for-service pipeline through its discovery platform, which underpins short-term revenue generation and acts as a horizon-scanning tool to determine potential areas of best fit for the Group's platform for future asset development.

Significant technical progress has been made in advancing Aptamer's Optimer assets during the first half of the year. Each of the Group's partnered programmes has reached critical milestones and increased traction has been shown with several developed Optimer binders showing positive progress in our customers' hands.

The Group's fee-for-service development has also seen strong commercial growth, including multiple contracts signed with global market-leading pharmaceutical companies and additional contracts won with biopharmaceutical partners.

Results summary

Aptamer delivered a substantial increase in revenue from its fee-for-service work in the first half of the year, which totalled £0.7 million (H1 2024: £0.3 million). As at 31 December 2024, an additional £0.5 million of contracted work was being delivered through the laboratory, with a strong sales pipeline valued at £5.1 million and £3.2 million of this potential value in advanced negotiations. Many of the newly signed contracts for the period represent repeat business for Aptamer, indicating the improving market acceptance and need for the Group's technology within the life science industry.

During the period, Aptamer completed equity placings, receiving net proceeds of £2.6 million. These funds leave the Group well-placed to execute its strategic programmes over the near term.

Aptamer is committed to maintaining a lean cost base to allow the Group to work towards Adjusted EBITDA break-even as revenues build. To make the progression to positive net cashflow and EBITDA break-even more achievable, Aptamer further reduced its fixed cost base from £3.6 million to £3.0 million during the period through a reduction of the operational headcount. Importantly, reductions to the Group's ongoing cost base have not compromised operational capacity or the scientific expertise within Aptamer, ensuring the required skill base for continued technical and commercial advancement.

At the period end, Aptamer had cash reserves of £2.0 million (H1 2024: £1.8 million). This solid financial position currently supports the Group's ability to execute its strategic plans.

Strategic Optimer programmes

Optimer as a novel ingredient in deodorant

In partnership with Unilever, Aptamer is developing Optimer binders as novel active ingredients in deodorants. Following the successful development of the binders' rigorous lab-based tests at both Aptamer and Unilever, the binders have shown highly positive and reproducible results. A patent was submitted in March 2024 to protect the developed binders. During the period, the contract with Unilever was extended to allow progression to on-person trials, the first phase was initiated on schedule in December 2024 with the testing of the Optimer binders in human skin samples. In-house analysis at Aptamer has shown the binders to be highly stable in skin samples, demonstrating their suitability for development as part of personal care products. Stability and safety studies are ongoing at Unilever, with further on-person trials anticipated this financial year.

Optimer for Alzheimer's disease diagnostic

Working with Neuro-Bio, Aptamer has developed Optimer binders to a novel Alzheimer's disease biomarker to enable a diagnostic test for early-stage Alzheimer's disease. The developed binders have been characterised and integrated into biosensor tests at Neuro-Bio. Validation of the tests with clinical saliva and spinal fluid samples has shown a statistically significant distinction between biomarker levels in Alzheimer's disease patients vs healthy individuals (1:100,000 probability of occurring by chance). The Optimer binder has been robustly validated and is driving the development of two point-of-care diagnostic platforms for in-clinic and at-home use.

Therapeutic delivery vehicle for fibrotic liver

Aptamer has developed an Optimer delivery vehicle selective for activated hepatic stellate cells "HSC" - which are the cells responsible for driving liver fibrosis. This binder can selectively deliver therapeutic payloads to HSC within the liver with the intention of developing new treatment approaches to liver fibrosis. The Optimer has been successfully manufactured with several different siRNA molecules. Analysis of the Optimer-siRNA construct in lab-based tests has shown selective targeting and concentration-dependent gene silencing, demonstrating effective functionality and the ability of the Optimer to selectively deliver RNA therapies to a target cell - overcoming a current limitation in many gene-based therapies which is delivery of the therapy to the site of action.

Based on the positive results achieved with the delivery vehicle, a collaboration was initiated with AstraZeneca at the start of the period to explore the functionality of the Optimer with AstraZeneca's siRNA. Lab-based tests have successfully demonstrated proof of principle, with conjugation of the siRNA, selective targeting of the Optimer-siRNA to the intended cell type, and effective gene silencing. The project will now advance to assess the performance of the Optimer-siRNA in animal models of liver fibrosis.

As part of Aptamer's in-house development of the fibrotic liver delivery vehicle, it has been successfully trialled with an siRNA molecule with the potential to disrupt the fibrosis process. Results show that the Optimer-siRNA reduces markers of fibrosis to healthy levels, indicating a potential therapeutic approach. Further studies are ongoing to assess this conjugate in functional assays.  

Fee-for-service work

Aptamer's fee-for-service work delivers binders for use in customer research, bioprocessing, diagnostic and therapeutic applications. The Group strives to retain ownership of the intellectual property in relation to the binders developed for customers, thus building a portfolio of assets with the potential for royalty and licence fee income. The Group is progressing with several potentially lucrative licensing opportunities with multiple customers regarding developed assets for a range of applications.

During the first half of the year, five new contracts were signed with top 20 pharmaceutical companies. Four of the contracts are aimed at developing Optimers as critical reagents to support active clinical development programmes and facilitate the analysis of novel therapeutics. An additional extension contract with a top 20 pharmaceutical company is to optimise previously developed binders for use in protein purification.

Several contracts have been won with biopharmaceutical and biotechnology customers for binder development to enable the accurate bioanalysis of clinical trials, for immunohistochemistry reagents, for the development of vaccine adjuvants, to progress a drug delivery vehicle, and for diagnostic biosensor development demonstrating the wide range of potential applications of Aptamer's technology.

Specifically, in November 2024, Aptamer's partnership with a genetics medicine company resulted in the successful development of a targeted Optimer delivery vehicle. Aptamer's binders showed excellent validation for specificity and pan-species binding, resulting in the commencement of the final commercial development phase. The delivery vehicle is intended to be used as part of a precision therapy, which would deliver downstream licensing revenue for Aptamer.

Further successful Optimer projects from the pipeline include binders delivered as part of the Eurostars project to support foetal diagnostics and a reagent for a global life science enzyme supplier. The binder delivered as part of the Eurostars project has been delivered to a commercial partner for in-house testing with the potential for downstream licensing. The Optimer reagent for use in assay kits has been validated at Aptamer and within the customer's labs, and licensing discussions are currently ongoing with multiple commercial partners.

Board and senior management changes

In August 2024, the Board was restructured, with Dr Adam Hargreaves appointed as Non-Executive Chairman, Dr Arron Tolley re-appointed as Chief Executive Officer, Andrew Rapson appointed to the Board as Chief Financial Officer. In September 2024, Tim Sykes was appointed to the Board as Non-Executive Director.

Summary and outlook

Aptamer has made significant progress in advancing its current Optimer binders, with new potential assets emerging from the fee-for-service development work, many of which are currently under licensing negotiation with relevant partners. This validates the new Board's more focused strategy with the potential for large-scale equity value creation through licensing revenues associated with developed assets, supplemented by a growing fee-for-service business that acts as a strong source for future asset selection.

The Group remains committed to delivering long-term shareholder value through strategic asset development, revenue growth and technical innovation. The Board is pleased with the progress made during the period, which has strengthened the Group's position for sustained growth as a leader in the affinity ligand space for the life science market.

Financial review

Revenue

Revenue for the six months ended 31 December 2024 was £0.7 million (H1 2024: £0.3 million) driven by a much-improved production pipeline entering into the financial period.  The Group has seen improved scientific delivery resulting in a number of projects delivering working binders to customers for them to test and validate.

During the period, a further £0.7 million of signed orders were received and the Group finished the period with £0.5 million of orders to take into the second half of the financial year. The pipeline at the period end stood at £5.1 million, which included £3.2 million of advanced stage deals, which the Group will be looking to convert a portion of during the second half of the financial year.

Gross profit

Gross profit for the first half of the financial year was £0.4 million (H1 2024: £nil), representing a 56% gross profit margin and a significant improvement over the recent full year gross margin of 29%. This improvement has come from an increased volume of customer work utilising more laboratory capacity in this period.

Administrative expenses

Administrative expenses were £1.5 million for the first six months of the year compared with £1.7 million for the same period last year. This decrease in costs has been achieved through a reduction in headcount.  Headcount reduced from 34 at 30 June 2024 to 28 at 31 December 2024.

Research and development costs

During the first half of the financial year the Group expensed £0.2 million (H1 2024: £0.2 million) within Administrative Expenses on research and development costs (employee costs and raw materials), related to building a body of data for Optimer-based gene therapy and precision chemotherapy and process improvements to streamline the production process.

Adjusted EBITDA*

Adjusted EBITDA was a loss of £1.1 million for the six months ended 31 December 2024 (H1 2024: £1.8 million). The decrease in loss was a result of improved revenue and gross margin, lower administrative costs and an increase in other operating income from sub-letting available office space and a Eurostars grant.

*Adjusted EBITDA is defined as Operating Loss before Share-based payment expense, Amortisation and Depreciation and a reconciliation to Operating Loss is shown within the Consolidated Statement of Profit and Loss and Comprehensive Income.

Tax

The Group claims research and development ("R&D") tax credits. Since it is loss making, the Group elects to surrender these tax credits for a cash rebate. The benefit to the Group is included within the taxation line of the income statement and amounts to £0.1 million for the first half of the year. Within current assets is a corporation tax debtor of £0.3 million, which relates to anticipated R&D tax credits in respect of claims not yet received/submitted for the 2024 and 2025 financial years. The claim for the year to 30 June 2024  amounted to £0.2 million and was received in February 2025. Tax losses carried forward totalled £12.0 million (June 2024: £11.4 million). The Group has not recognised any deferred tax assets in respect of trading losses arising in the current period or accumulated losses in previous periods.

Loss for the period

The loss for the period was £1.1 million (H1 2024: £1.8 million). The basic and diluted loss per ordinary share decreased to 0.07 pence per share (H1 2024: 0.5 pence per share) based upon an average number of shares in issue during the period of 1,583,220,709 (H1 2024: 359,338,261).

Cash flow

The Group had £2.0 million of cash at 31 December 2024 (H1 2024: £1.8 million, FY24: £0.9 million). The cash inflow for the six-month period to 31 December 2024 was £1.1 million. During the period proceeds of £2.6m, net of costs, were received from placings. Net cash used in operations totalled £1.3 million, which is slightly higher than the Adjusted EBITDA loss of £1.1 million due to a build up of trade debtors at the period end which were cleared in January and February 2025.

Going concern

For the reasons set out in note 3, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.